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CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization

A company secretary is asked about the territorial reach of the Banking Regulation Act, 1949. Which statement matches the Act's text?

The Act extends to the whole of India. Section 1(2) says so, and the earlier words excluding the State of Jammu and Kashmir were omitted with effect from 1 November 1956, so no State is carved out.

  1. AIt extends to the whole of IndiaCorrect
  2. BIt extends to India except the State of Jammu and Kashmir
  3. CIt applies only to the States that adopt it by resolution
  4. DIt applies only to metropolitan cities

Explanation

Section 1(2) states that the Act extends to the whole of India. The exclusion of Jammu and Kashmir was removed by an amendment effective 1956, so the second option is outdated.

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